Kingsmen Creatives

[RBM]

Thank you for sharing the AmFraser report MW,

I understand there was a Kingsmen Management call with members of the "Analyst Community" yesterday and I know that the question regarding eroded E&M division margins was raised ............. I would not be at all surprised if this thread is being monitored by at least one of the analysts following the stock.

The AmFraser report explains the lower margins for M&E division, and also the seemingly higher orderbook reported in Feb 2012 compared to Feb 2013 (high base effect). Informative but I think they are too aggressive on the EPS growth rate. Even with a 10% growth in EPS we should just see an EPS of 9.83c/share for FY 2013.

Thanks Musicwhiz for the info.
It basically answers our questions.
That's quite a mere chance.

I attach below a piece from Lynette Tan, analyst at OSK-DMG. She places emphasis on Kingsmen's cash hoard. But otherwise not sure it adds a lot to the postings recently made on this VB thread ................

QUOTE
Kingsmen Creatives: A record quarter; Good times likely to continue (BUY, S$0.79, TP: S$0.93)
Lynette Tan(+65 6232 3895, lynette.tan@sg.oskgroup.com)

4Q12 PATMI grew 6.2% YoY to SGD6.4m, as revenue jumped 25.3% to SGD102.1m. The results were in line with expectations.
Besides the record quarterly performance, Kingsmen also achieved a record high in its cash balance (SGD53.1m). Kingsmen expects FY13 to be another good year, backed by the strong demand for its services and Asia’s growth as an events and theme parks destination. Management declared dividend of SGD4.0¢ / share, which translates into a yield of 5.1%. Its pipeline of projects in the theme parks arena would keep it busy over the next few years. Kingsmen trades at 8.4x FY13F P/E, or 5.4x ex-cash. As we roll forward our earnings, we have a revised TP of SGD0.93, based on 7x FY13F earnings (ex-cash). Maintain BUY.

Huge cash hoard. Kingsmen maintains its strong balance sheet, with a net cash position of SGD48.4m (or SGD0.25 / share). This healthy position, coupled with its operations continuing to generate strong cash flows, would place Kingsmen in a comfortable position to take on more projects. At the same time, Kingsmen is also looking to build its own office building in Singapore, when its current lease expires in 2016. This cash hoard could come in handy for this
purpose.

Outlook continues to be positive, backed by economic growth in Asia and its importance on the world stage. More events and meetings are being set up in Asia. More theme parks are also slated to be open in the region over the next few years, targeting Asia’s rapidly growing middle class. Kingsmen is in a good position to benefit from these trends, having done works for a number of regional events and theme parks. As consumerism in Asia is still relatively healthy, new malls are emerging, existing ones will continue to undergo refurbishment and new international brands will try to penetrate the region. This would benefit Kingsmen’s Interiors business. Its order book currently stands at SGD81m, which is expected to be recognized in FY13.

Maintain BUY, TP raised to SGD0.93. We are estimating earnings of SGD18.0m for FY13. Based on 7x P/E (ex-cash), we have a TP of SGD0.93, a 17.7% upside from current levels. Kingsmen will be conducting a briefing on 4 March. We will issue a further update, if necessary.
UNQUOTE

Vested